Arc Capital Holdings Limited : Disposal of Goodbaby

10 January 2013

ARC Capital Holdings Limited Disposal of Goodbaby International Holdings Limited

ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is pleased to announce that on 8
January 2013, it completed the sale of its entire holding in Goodbaby International Holdings Limited ("Goodbaby Listco"), which is publicly traded on the Hong Kong Stock Exchange under the stock code (1086). ARCH realised a total of HK$420.8 million (approximately US$54.3 million) since September 2012, when ARCH initiated a realisation strategy to sell its shares in the market through multiple block trades. Together with a small realisation in November 2010 during its public listing, ARCH's investment in Goodbaby Listco has realised a total of US$64.5 million representing an IRR of 18.23% and a gross cash multiple of 2.8x.
In June 2006, ARCH invested US$23.9 million for a 25.3% ownership stake in the Goodbaby Group which would later be reorganised into two separate businesses, Goodbaby Listco (design, manufacturing and international branded sales) and Goodbaby Private (domestic retailing platform). In November 2010, Goodbaby Listco was publicly listed on the Hong Kong Stock Exchange. In September 2012, ARCH's Board approved a plan to sell down its stake in Goodbaby Listco which it has now completed. ARCH continues to hold its minority stake in Goodbaby Private (valued at US$3.5 million at 30 September 2012).
Commenting on the successful realisation, Managing Partner of ARC Capital Partners
Limited, Rachel Chiang, said:
"Goodbaby was one of the first investments ARCH completed when it was launched in June 2006, and we are pleased to have been part of Goodbaby's significant growth over the years and its successful public listing."
Proceeds of the sale will be distributed to shareholders in the near future.
For more information, please contact:

MANAGER: Rachel Chiang, Managing Partner ARC Capital Partners Limited T: (852) 2918 0088 F: (852) 2918 0881 [e-mail]	NOMINATED ADVISER: Philip Secrett Grant Thornton Corporate Finance T: (44) 20 7383 5100 [e-mail]
BROKER: Numis Securities Limited David Benda / Hugh Jonathan T: (44) 20 7260 1000 F: (44) 20 7260 1001 [e-mail]	MEDIA RELATIONS: Stephanie Barry T: (852) 3719 3375 [e-mail] INVESTOR RELATIONS: Chong Min Yi T: (852) 3719 3319 [e-mail]

About ARC Capital Holdings Limited

ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is a closed-end investment company with net assets of US$335.6 million as at 30 September 2012. ARCH was admitted to trading on the AIM Market of the London Stock Exchange in June 2006. ARCH holds investments in the retail, consumer goods and consumer services sectors, principally in China.
For more information about ARC Capital Holdings Limited, please visit: www.arch- fund.com